In a US$107million acquisition, Hardwoods Distribution Inc. will purchase substantially all of the assets used in the business of Rugby Architectual Building Products. An additional US$13million is valued for future performance.
The acquisition will add 31 new U.S. locations for Hardwoods, doubling Hardwoods’ existing footprints and significantly expanding its presence on the U.S. East Coast.
Rugby is a leading U.S. wholesale distributor of non-structural architectural grade building products to customers that supply end-products to the commercial market. The company also serves in industrial, retail, residential and institutional construction end-markets.
“This is a highly strategic business combination that brings together two successful, growth-oriented companies to create the number one distributor in our industry,” commented Rob Brown, Hardwoods’ president and CEO. “The Transaction meets our objective of increasing our distribution capability in additional US markets, particularly in the Eastern US. It also aligns with our ‘strengthen commercial’ strategy by deepening our presence in the attractive commercial market. Rugby’s business model is very similar to our own and its product focus and customer base are highly complementary. Together, we are creating a larger, more efficient platform for distributing our respective product lines.”
David Hughes will continue to serve as Rugby’s president along with Drew Dickinson who will remain as Rugby’s chief operating officer.